Features of Strategic Control System

Features of Strategic Control System

Features of Strategic Control System

Strategic control is a term used to describe the process used by organizations to control the formation and execution of strategic plans; it is a specialized form of management control, and differs from other forms of management control (in particular from operational control) in respects of its need to handle uncertainty and ambiguity at various points in the control process. Strategic control is also focused on the achievement of future goals, rather than the evaluation of past performance.

Focus: Strategic control concerns the Whole of an organization or division. Its focus is on all the operations of an organization or unit.

Nature: In Strategic control psychological considerations are dominant. There are very little rules and a high degree of judgment or subjective decision making are involved.

Time Horizon: Strategic control involves weekly, monthly, or yearly time frames.

Type of Data Used: A management control system is usually built around financial data.

Analogies Techniques: These analogies do not work well with management control system.

Techniques: Strategic control system depends on management information system (MIS) and decision support system (DSS) as its activities are not programmable.

Role of System: In management control, the system is a relatively insignificant part of the control process. The success or failure of the management control process depends on the judgment, knowledge and other personal characteristics of the manager.

No. of data sources: Strategic control requires data from more sources.

Source of data: Strategic control requires more data from external sources.

Share This Post